Economic forecast holds mixed news for Calif.

December 7, 2010 12:00:00 AM PST

WESTWOOD, Calif. --

The quarterly UCLA Anderson Forecast showed that new state government reforms and a revived housing market along the coast could put the economy on strong footing once it finishes a long, sluggish recovery. The report suggested that an increased demand for housing along the coast could mean a boom in the real estate market in coastal areas and a rebound in prices.

The report noted that the state will still be in for some pain before it realizes these longer-term gains.

Employment is expected to grow just 1.6 percent, while unemployment is expected to stay at 11.4 percent through 2011.

The economic growth that does occur will be driven by education, health care, exports and technology.

UCLA's forecast also said November's ballot measure allowing budgets to be passed with a simple majority could make California more attractive to businesses and improve its borrowing costs.